Advertisements

Tag Archive: High-frequency trading


In the past years my posts on 14th February some way or the other have been in conversations between Love and Finance, my last blogpost in 2013 on Feb 14th was a kind of open proposal expression through the priceless charts Love you by Finance Market Professional : Valentine day! , also today my blog turned-up 6 years old, and my first ever post was on the Mergers and Acquisitions in India! and the government policies .

Getting back to the topic for today A few years ago, somebody asking this question on market timings would have been dismissed as a nit-picking nerd, but today that question has become extremely important. Last week, the Wall Street Journal’s Money Beat blog ! carried an interesting story about how this difference cost a trader $100,000. Continue reading

Advertisements

The Financial Services Industry as a whole have been facing criticism in somewhat or in different form. In the mean time

Bowled Over -- Michael Oriard (Big-Time Colleg...

we are trying to see the industry from the Behavioral prospective and trying to break the problems as follows:

Simplicity does not pay well: Investing should be relatively simple: Buy broad asset classes, hold them over long periods of time, re balance periodically, get off the tracks when the locomotive is bearing down on you. The problem is its easier in theory than is reality to execute. And, it is difficult to charge excessive fees for these services.

Confusion is not a bug, it’s a feature: Thus, the massive choice, Continue reading

High Frequency Trading

The Bank of England has just released a new paper titled “High-frequency trading behaviour and its impact on market Sandy Traderquality: Evidence from the UK equity market” . The paper is similar to the recent Kirilenko study in that it separates ‘aggressive” and “passive” high frequency traders and it uses data which identifies the counterparties of each transaction.

Before we get into some of the specifics of the paper, it’s important to note how the Bank of England defines HFT:

“The term “HFT” is generally used Continue reading

Last week Knight Capital Group lost $440 million when it sold all the stocks it accidentally bought because a computer glitch. Well Group ($KCG) lost $440 million – that’s aLmost as much as Zuckerberg loses each day!

When this story first broke, it was a bit different from other “algos gone wild” stories we’ve seen in recent history: there were 140 stocks affected, and they were on both the buy side and the sell side. We can say that the large programming trading desk, Continue reading

%d bloggers like this: